Accounts Receivable Factoring Services - Receivables Funding
If your business is unable to obtain bank financing but generates quality accounts receivables, receivable funding can be an ideal temporary solution to solve your daily working capital needs. Delivered promptly, professionally, and most important confidentially.
Business Owners & Managers, we offer accessible cash flow solutions without the hassles of getting a loan from a bank. Approvals within hours!
Accessing accounts receivable factoring services simply requires a business to be providing products or services to other creditworthy businesses on terms.
What Is Accounts Receivable Factoring?
Accounts receivable factoring (aka receivable funding) is a commonly used form of funding where a business sells its outstanding receivables to a factoring company (aka factor) to obtain immediate working capital.
Regardless of your current financial condition, personal credit history, or time in business, factoring accounts receivable allows you to quickly and easily access your funds tied up in unpaid invoices within 24 hours without the usual red tape associated with traditional financing. Receivable factoring companies give growing business tremendous advantages over bank loans, private investors or friends and family.
When you are factoring account receivables, you are getting cash advances against the face values of your outstanding invoices. The only deduction that comes out of your proceeds is the small discount fee charged by the factoring company. The balance is deposited directly into your bank account, and much of it is deposited within a few hours of approving the invoice.
The great thing about factoring accounts receivable is that there is no need for you to have great credit. The really important decisions in an accounts receivables factoring transaction are based on the credit strength of your client base. No matter how bad things seem to be going for your company, as long as you have outstanding receivables with creditworthy clients, then you have the cash flow you need to do business.
Who Can Benefit From Accounts Receivable Funding?
Now let's look at the type of situations where you can benefit from receivables funding.
A Small Business or Start-Up With Weak Cash Flow
When entrepreneurs decide to make the big move and start companies, they will usually secure enough funds for the first six months of operations. After that start-up funding runs out, there better is cash flow from customers paying their bills or else the new companies are in trouble. More often than not, the new company runs the risk of going out of business.
A lender won't help in this situation because of the startup's inconsequential credit history. Instead of worrying about how you will keep your small business afloat, you just need to gather up your outstanding receivables and get in touch with our accounts receivable factoring company.
Companies With Bad Credit
In the business world, bad credit is like a snowball rolling down a snowy mountainside. By the time it reaches the bottom, it is an unstoppable boulder of ice and snow. When your company has bad credit, the bankers are usually unwilling to lend you the money you need to keep going. That is when you get involved with receivables funding and let your outstanding receivables pave the way to success.
Growth Is Outpacing Cash Flow
Your company has toiled for years and now you are finally seeing a large financial growth. Things are so great that the orders you are getting are outpacing the money that is coming in. A banker can make this a big problem by refusing to lend you working capital due to your tenuous cash position. But a receivable factoring company will get you the cash you need and keep that cash rolling in, just as long as you have outstanding invoices being generated.
Companies That Are Just Recovering From Financial Issues
If your company has just come out of bankruptcy or has tax liens hanging over like a storm cloud, then it will be impossible to get operating cash from a bank. But a factoring company can take your invoiced sales and get your company back on its feet.
A receivable funding company is the kind of financial provider that you need when it feels like you have no other options. Remember that to a receivable factoring company, the strength of your organization is in the invoiced sales that you have worked so hard to generate.
Companies That Want to Avoid Debt
Contrary to receivable financing and loans, accounts receivable factoring does not create debt for your business. When you are factoring accounts receivables you are selling an asset to the factor. When you use receivable financing you get a loan that uses the accounts receivable as collateral. Receivable factoring and receivable financing look like the same product, but as you can see they have a completely different impact on your company’s balance sheet. Choose wisely.
Factoring Accounts Receivable is Easy with Our Factoring Company
Step One: Speak with a Decision Maker Today
- Simply dial our number 1-855-424-2955, email us, or submit a factoring quote form and we’ll connect you with an Underwriter (no slick salesmen, factoring brokers or un-informed call center representatives) who will listen to your situation and determine if we have a program that will work for both of us. Our Underwriters are seasoned professionals in the receivable factoring industry and can make immediate and binding decisions from the first phone contact.
- Upon receipt of your completed receivable factoring application, the same Underwriter will review and evaluate your information within 1 hour and either ask clarifying questions or provide you with a comprehensive written invoice factoring proposal for your review. There’s no commitment on your part.
- Upon receipt of the closing documents, your account can generally be opened and you can start factoring account receivables within 3 business days with the peace of mind knowing you’ll have thencash to support your businesses.
Step Two: Accessing Accounts Receivable Funding is simple and straightforward
- You will continue to invoice your customers as normal.
- You determine which customers to factor and which invoices to receive funding on.
- When you’re ready to access your funds, simply send us a copy of the invoices and include supporting documents (purchase contracts, time-sheets, delivery receipts, etc.). Generally, within 24 hours of receipt of the aforementioned, we’ll buy your invoices, pay your advanced amounts and wire your funds directly into your business checking account.
- Yes, the receivable factoring process with our factoring company is that simple!
Step Three: Customer Payments & Reporting
- In your customer’s normal course of business, they will continue to make checks payable to your business but will be mailed to a special lockbox so we can collect the amounts due. This keeps the relationship confidential.
- Each day, we sweep the lockbox and post the payments received from your customers.
- Every Thursday we release your reserve balance on collections, allowing you to fully close out the client debt in your accounting software.
- You will have 24/7 access to the various receivable factoring reports our software generates allowing you immediate access to invoices sold, invoices collected, your reserve balance, and various other management reports.
Take the Next Step and Grow Your Business. Talking with a Decision Maker can make all the difference in solving working capital problems professionally.
Take a minute to complete the Factoring Quote Form or give our managing director a call at 1-855-424-2955 for immediate and personalized attention.
Our accounts receivable factoring company offers:
- Competitive discount rates beginning at 1% for the first month.
- Recourse and non-recourse receivable factoring arrangements
- Low factoring requirements & flexible agreements
- 24-hour accounts receivable funding
- Factor only the customers you want
Article Author: Marc J. Marin